For years the Yen carry trade has propped up the Fed’s Ponzi markets. But now it looks like the BoJ is intervening decisively to bolster the yen.

BANK OF JAPAN MIGHT HAVE INTERVENED IN THE CURRENCY MARKET.

USD/JPY pair dropped from 163.6 to 159.5 in the last 6 hours, a 2.5% move.

This type of move doesn’t happen without central bank intervention.

The BOJ makes its rate decision tomorrow.

If this drop is real intervention, it means officials are moving before the decision to avoid a much bigger yen selloff if tomorrow’s outcome disappoints markets.